The high repair bill of the auto repair shop can tear a big hole in the household budget. Sometimes it even poses an existential risk, especially if there are no savings reserves and family, relatives or friends cannot help out.The credit for car repair is the only solution in such a case, because many are dependent on their vehicle for professional reasons.
What type of credit for a car repair?
The amount of the invoice, which in the best case is determined in advance by a cost estimate, determines the loan amount and thus also the type of loan. There is a choice of overdraft, on-demand credit and credit lines, which can have their advantages and disadvantages for the car owner.
The credit line for car repair – the top offers in January 2020
The overdrafting of the checking account within the framework of the granted credit line is rather expensive fun and therefore only suitable for very small amounts. A credit line is the cheaper alternative here and also offers ample scope for repayment. It is not tied to terms. The credit line ranges between small and large amounts, depending on the creditworthiness of the borrower. The installment loan with fixed terms and a fixed interest rate over the term opens up as a solution for larger amounts, the repayment of which is designed for a long term.
Choose the repair loan wisely
Compare and calculate is the motto of a car repair loan. Your own financial interests must be taken into account, because every loan must be repaid. A monthly minimum rate, which must be applied, must also be taken into account for a credit line. Installment loans usually offer a favorable interest rate the longer the term is. It is therefore advisable to compare the terms of a framework loan and an installment loan.
The bottom line is the loan amount including interest. The question of how the financial development will look in the coming months determines the right loan. If it is only a one-time bottleneck that can be easily compensated for, the call credit or credit line should be in the foreground. Alternatively, the overdraft facility comes into question, with higher interest costs.